Crowdfunding vs. other ways of getting funds in a nutshell

As the concept of crowdfunding catches on in India, with thousands giving crowdfunding India a shot to raise funds for medical treatment, social change projects, or to fund big creative ideas, people are beginning to show an interest in learning more about how and why the process works. Those expressing interest are mostly middle class Indians and urban area residents, as well as being heavy internet users with access to smartphones. Much of their internet use happens through social media, specifically channeled through Facebook, WhatsApp, and Instagram, also email. This makes this segment an ideal group to thrive as users of fundraising India, which they are unaware of as yet.

Because of this lack of awareness and knowledge of crowdfunding, what the segment described above does is go in for more conventional methods of accessing large funds at times of need. The purpose of this article is to point out the advantages of crowdfunding over each one of these methods to encourage people to come forward and choose crowdfunding in India proactively.

• Loans: Most bank loans or even loans from professional moneylenders will come will come with extensive and often challenging eligibility criteria based on your income level. Also, even if you qualify, there will be some degree of formality to negotiate by way of a process before the loan comes through. By that time, it may be too late to save your loved one or to aid the unfortunates you were trying to save through your social enterprise venture. Finally, to restate the obvious, you have to repay the borrowed amount with steep interest, unlike with crowdfunding, where no payback and no eligibility criteria and no protocol is involved after your campaign is approved.

• Mortgages: Why would you put a piece of your valuable property at risk in order to raise funds for a worthy cause? Crowdfunding does not demand a collateral, but allows you to access funds from donors who willingly give it as gifts without expectation of anything back.

• Haphazard borrowing: In the face of turmoil we are naturally impelled to seek out the support of friends and family, and when the crisis has a financial aspect to it we ask for monetary help too; it’s natural. But crowdfunding in India helps ask for financial help organized, visible, and transparent, and also improves your outreach to a much wider circle of people who trust your credibility because they trust the platform.

• Insurance: Full payouts are rare, and few Indians have coverage anyway. Crowdfunding India lets anyone ask for help online.

Selling assets: We advise you to hold on to your property and start a fundraiser instead! Starting a fundraiser is free and there is no risk. Give it a shot before you cut your losses.